According to IDEA, the game industry, which has seen years of growth, has faced a slowdown in the past year due to the halt in the activities of game production companies. During this time, industry players have experienced the heavy shadow of Google Play’s filtering more than any other problem, and they have repeatedly warned about the issues caused by the blocking of this app store. The promises of the Minister of Communications to review filtering policies and follow up on the removal of Google Play’s filter have not borne fruit, and the latest action by Eisa Zar’epour in July to reopen Google Play did not receive the approval of the Content Determination Taskforce.
Resistance to the Removal of Google Play Filtering While this is happening, not only has it caused significant losses and damage to the game industry players, but it has also led to the widespread migration of game developers to other countries. Recently, the head of the Commission on Entertainment Software and Computer Games of the Nasr Organization in Tehran emphasized that in the long run, Google Play’s filtering also hurts domestic app stores and weakens all sectors of the Iranian gaming industry.
An Industry on the Brink of Destruction
Google Play’s filtering has elicited strong reactions from many gaming industry professionals. In this regard, last week, Abolfazl Sadegh, the head of the Commission on Entertainment Software and Computer Games, said in an interview with IDEA about the impact of Google Play filtering on the gaming industry: “According to the statistics of the National Foundation for Computer Games, we have about 32 million gamers in Iran. In fact, these statistics show that video games currently play a significant role in entertaining people. Given the restrictive conditions that the government has created for game developers, it has practically pushed the country’s gaming industry toward destruction. This means that we are losing our most important tool for cultural development.”
He continued, “Unfortunately, Google Play’s filtering has caused irreparable damage to the country’s gaming industry over the past year and has effectively crippled the activities of companies active in this field. Advertising costs on domestic platforms are not cost-effective. In fact, we are caught in a vicious cycle where its damages increase every day.”
Sadegh emphasized that with Google Play filtering, not only has the marketing sector been disrupted, but also the development tools that Google Play provided to developers are now inaccessible, and they can no longer utilize these capabilities. He further explained, “The reason for this is the blocking of user entry channels into this section, which is why we have problems in the development and optimization process of games.”
In response to the question of whether domestic app stores can be a replacement for Google Play, the head of the Commission on Entertainment Software and Computer Games said, “Domestic app stores should coexist with Google Play. The idea that domestic app stores can replace Google Play is entirely mistaken. Google Play’s filtering also harms domestic app stores in the long run. Most of the games available in the market and Cafe Bazaar are Iranian. With the continuation of this process, Iranian users will not be the target market for developers, and ultimately, the income that can be obtained through the creation and development of new games for domestic app stores will disappear. It is time for domestic app stores to make changes in their business model as well. Currently, domestic app stores account for 30% of game sales, a share that is not commensurate with the services they provide. Domestic app stores need to focus on generating revenue through advertising, and the share of stores from developers should be reduced to zero. With this process, developers will allocate more budget to attract users through domestic platforms.”
Sadegh emphasized that Iranian startups experienced their toughest working days in the past year and added, “We are still witnessing problems such as filtering and the threat of the government’s confiscation of a private sector portion of major startups. Raising such issues not only does not discourage us but also encourages us to strive harder to assert our rights. Those who raise such issues are the real opponents of the country’s digital economy growth and the Iranian youth and talents. Hopefully, within the government, there are still people who will make the right decisions so that we can soon witness the lifting of filtering on Google Play, YouTube, and other platforms.”
He concluded by stating that, due to the high income generated by the gaming industry, many European countries provide significant support, including tax exemptions or covering 50% of development costs, to game developers. In Iran, not only are such supports not provided to game developers, but also, with the filtering of multiple platforms, we are practically witnessing the destruction of the gaming industry.
Halting Revenue Growth with Google Play Filtering
Google Play filtering has had a significant negative impact on game development studios. The CEO of the game development studio, Madrick, stated in an interview with IDEA in response to questions about the effects of Google Play filtering on Madrick’s revenue and whether domestic app stores have been able to serve as a suitable alternative for income generation: “Google Play apps play a crucial role in the online gaming industry worldwide. In fact, Google Play is currently the most important app store in this industry. The Madrick collection, like other collections, used this store, and a significant portion of our revenue came from it. Approximately 50% of our income was expected to come from Google Play, but it was halted due to filtering. Domestic app stores in the market have not been able to replace Google Play. For a brief period, we witnessed revenue growth through these stores, but this trend stopped after a while.”
He went on to discuss the challenges of domestic app stores, stating, “One of the most important features of foreign app stores is the ability to attract more users. This capability is not available in domestic app stores and does not significantly help game development studios in this regard. Additionally, to get listed on domestic app stores, we have to pay higher fees. In fact, domestic app stores become our revenue partners, while the installation cost falls solely on the developer. Furthermore, due to the lack of good features such as displaying multiple product lists, installations on domestic app stores do not naturally receive an acceptable amount of installations. This reduces profit margins and, in many cases, even results in negative campaigns. These problems exist in domestic stores, while Google Play, despite the sanctions against Iran, presents our products excellently to Iranian users and increases installation rates. Moreover, most of these services are free, and even in cases where there are fees, they are still much more cost-effective than domestic app stores.”
Previously, Mohammad Zehatabi, the CEO of the Paeizan studio, also stated that filtering and the instability of the Internet have had a negative impact on their work. He told IDEA”We are forced to provide extensive support every day. Many users cannot connect to the games. Many other users who wanted to download games through Google Play lost this opportunity due to the filtering of Google Play. As a result, we face many challenges in attracting an audience in Iran.”
He continued, emphasizing that game development for the Iranian market is no longer profitable because platforms like Cafebazaar and Myket receive a significant portion of the revenue. He said, “Considering the high risks of game development for the domestic market, it is no longer worthwhile for game developers to produce products for Iran.”
Google Play, as the primary source of income for mobile game developers in Iran and the most important part of the IT industry in terms of technology, has now been filtered, and game development teams are under tremendous pressure in this regard. In addition to Google Play, other services that a game developer needs are either sanctioned or filtered. These issues are putting game developers in a very difficult position. Another significant problem in our industry has become migration, as professionals who have been active in this industry for at least 5 or 6 years are now planning to migrate to European and Persian Gulf countries.”
Despite repeated calls from industry professionals to lift the Google Play filter and promises from the Minister of Communications, the situation of this app store remains uncertain. According to industry experts, the current trend not only does not help the growth of domestic app stores but will also seriously harm them in the long run. Additionally, it will contribute to the increasing migration of professionals in this field to European and Persian Gulf countries.
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